Bank of America Analysts See Gold Headed to $3,000

If two metals forecasters are correct, the second “gold rush” may attain heights never before reached.

Two Bank of America analysts wrote recently that the price of gold will head as high as $3,000 in the next 18 months, according to a report quoted in Bloomberg and elsewhere.

At the time of publication, the spot price of gold was trading at $1,717 an ounce. After breaking through the $1,700 level earlier this month, the yellow metal’s price fell back into the $1,600s, only to cross that benchmark once again this week.

Yet, even with all the ups and downs, the metal is currently trading at its highest level in seven years.

The Bank of America analysts noted that gold prices have had a “robust run” this year, with returns broadly outpacing other major asset classes.

The analysts were already bullish on gold, predicting it would hit a record $2,000 within the next 18 months.

But in their new report, “The Fed Can’t Print Gold,” the analysts said they were raising their outlook for a number of factors, including the global economy facing a possibly severe recession due to the COVID-19 lockdown, with the U.S. GDP possibly contracting by double digits in the current quarter. They also praised gold as the “ultimate store of value.”